On Wednesday's edition of "Fox & Friends," host Steve Doocy spoke with Andy Puzder, the CEO of CKE Restaurants (which owns Hardee's and Carl's Jr.) to discuss the concept of the "welfare cliff" -- or, the idea that some people might not want to take a promotion because they would receive fewer government benefits.
"The policy guys call it the 'welfare cliff,' because you get to a point where if you make a few more dollars you actually lose thousands of dollars in benefits," said Puzder. "And, quite honestly, these benefits are essential for some people. They are how they pay their rent, they are how they feed their kids. So, what happens is we have people who turn down promotions or, if minimum wage goes up, they want fewer hours... because they are afraid they'll go over that cliff."
"It's got to drive you nuts," Doocy responded," because you're always looking for good people to run your stores. And if they would just take the next step... up the ladder, next thing you know they could be a manager making $80,000, but they don't want to lose the free stuff from the government."
Watch the video below, courtesy of Media Matters:
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